Real estate investor Nick Perry grades five property types. Condos get an F due to HOA restrictions and financing issues. Single-family homes earn at least a B, and Perry owns over 100 doors in growing markets. Short-term rentals are a D now that the Airbnb boom has ended and cities are cracking down.
Condos. I give them an F. They have thin buyer pools, HOA issues, restrictions on renting them out, and in a lot of markets you can't even get financing. Commercial. S if you already have capital and experience, but for the average person watching this, it's a D at best. Single family. I'd put at a B minimum because of appreciation. I've got over 100 doors in growing markets and the majority are single family. Short-term rentals. A D because the Airbnb gold rush is over. Cities are cracking down, there's oversaturation everywhere, and high competition if you're not in a destination market. ADUs. In California, they're A tier, but in rural Texas, F tier. So I wouldn't blanket rank that.
